Creating peace of mind through honest and committed management.

[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

March 26, 2012
REIT Issuer
Ichigo Real Estate Investment Corporation (8975)
1-1-1, Uchisaiwai-cho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
Asset Management Company
Ichigo REIT Management Co., Ltd.
Representative: Wataru Orii, President & Representative Director
Inquiries: Masaya Hiruta, Senior Executive Managing Director
Tel: 03-3502-4891

Acquisition of TK Real Estate Equity Interest
Ichigo Real Estate Investment Corporation (“Ichigo REIT”) has acquired a TK (tokumei kumiai) realestate equity interest, per the below.
1. Acquisition Summary
Asset Type
Asset Name
Property in Trust
Investment AmountContract Date
Acquisition Date
Financing Method

TK equity interest in trust beneficiary right in real estate
Namboku Holdings GK TK Equity Interest
M’s SQUARE
20,000,000 yen (0.94% ownership of TK Equity Interest)
March 26, 2012
March 26, 2012Cash on hand

2. Acquisition Rationale
Following its merger with the former Ichigo Real Estate Investment Corporation on November 1, 2011,Ichigo REIT has been proactively taking actions to further its growth as a comprehensive J-REIT andpursue stable and steady profitability. Ichigo REIT has defined the period until October 2012 as “Stage I”
under this growth strategy, aiming to “Lay the Foundation for Growth” by improving portfolio quality
via the strategic use of its negative goodwill.
This TK investment is consistent with Ichigo REIT’s growth strategy and secures an opportunity for
Ichigo REIT to acquire a high-quality asset. The investment complies with Ichigo REIT’s portfolio
construction policies under the Articles of the Investment Corporation and is financed via cash on hand.
With this TK investment, Ichigo REIT will receive dividends from any profits generated by rental
income. In addition, Ichigo REIT has received preferential negotiating rights to acquire the underlying
real estate asset. (For details, please see “Overview of Preferential Negotiation Right” in “3. AssetSummary” below.) This preferential negotiating right confers upon Ichigo REIT a right, but no obligation,to acquire this asset. This option to acquire a high-quality office asset is expected to contribute to Ichigo
REIT’s healthy portfolio growth and increased profitability over the middle- to long-term.

In deciding to acquire this TK equity interest, the Ichigo REIT made note of the following positive
features of the underlying real estate asset:(1) Location
The property is in an excellent location in the Kanda-Ogawamachi area near Otemachi, thefinancial center of Tokyo. Ichigo REIT believes that there is a strong and constant tenant
demand for properties in this area.
(2) Asset Characteristics
The property has extremely convenient train and subway access, being a 1-8 minute walkfrom multiple stations, including Ogawamachi Station on the Toei Shinjuku Line, Awajicho
Station on the Tokyo Metro Marunouchi Line, Shin Ochanomizu Station on the Tokyo Metro
Chiyoda Line, Ochanomizu on the JR Chuo Line and Kanda Station on the Tokyo Metro
Ginza Line and JR Yamanote Line. The property is located on a corner lot with three sides
open, which makes the building highly visible. The floorplate is ideal for office use, with arectangular shape without intervening columns and pillars, which makes it flexible for variouslayouts. The building is also relatively new, which makes it highly competitive in this area.
3. Asset Summary(1) TK Overview
TK Operator
TK Agreement Period
Total TK Investment
AmountTK Agreement Details

Namboku Holdings GK
Through March-end 2017, or the business day following the day allof the senior liabilities are repaid
2,117 million yen
Namboku Holdings GK
Trust beneficiary rights inTK Equity Interest
real estate (juekiken)
2,117 million yen
2,117 million yen(Note 2)
(Note 1)
(Note 1) The appraisal value as of March 16, 2012 is 2,230 millionyen.
(Note 2) Ichigo REIT has invested 20,000,000 yen (0.94%) of the
TK Equity Interest.
(Note 3) Ichigo Real Estate Investment Advisors (“IRE”) is theasset manager of Namboku Holdings GK. IRE is a related
party of the asset manager of Ichigo REIT, Ichigo REITManagement Co., Ltd. (“IRM”), as defined in theEnforcement Ordinance of the Investment Trust andInvestment Corporation Law.
Calculation Period:
Quarterly (January-March; April-June; July-September;
October-December). However, the first calculation periodruns from the acquisition date of the TK Equity Investment
until March-end 2012.
Distribution of Profit and Loss:
The Operator will distribute the profit, if any, to the TK
equity holders according to their investment ratio for eachcalculation period on the last day of each calculation-2-period. However, in the case where the equity is decreasedby loss, the Operator will not distribute any profit until theloss is recovered.
If losses from the business are generated in eachcalculation period, equity holders shall be distributed pro
rata the losses according to their investment ratios in eachcalculation period within the amount of losses.
In the case where the cumulative loss exceeds the total
equity contribution, the loss is limited to the equitycontribution.
Right to preferential negotiation for acquisition ofDescription
the underlying real estate
Exercise
Period ofThrough March 25, 2013
Preferential
Overview of Preferential Right
Negotiation RightIf Ichigo REIT offers an acquisition price of 2,130
Preferential
million yen or more, the Operator shall be
Negotiation
obligated to sell the real estate to Ichigo REIT atPrice
the offered price, unless the offered price fromIchigo REIT is extraordinarily irrational relative tomarket pricing at that time.
(2) Real Estate Overview
Property Name
Asset
Trustee
Period of Trust Contract
LocationLand

Building

Property Right
Size
ZoningCoverage Ratio /Floor Area Ratio
Property Right
UseStructure
Total Floor Area
Construction Date

Number of Tenants
Monthly Rental Income
Deposit
Leasable Space
Leased Space
OccupancyArchitect
Builder
Structural Strength Calculator
Inspection Agency
PML (Assessor)

M’s SQUARE
Trust beneficiary rights in real estate (juekiken)
The Sumitomo Trust & Banking Co., Ltd.
February 27, 2007 – March 31, 2022
1-16-1, Kandanishikicho, Chiyoda-ku, Tokyo (lotnumber)
Ownership (fee simple)
417.32 m2
Commercial
80% /800%
Ownership (fee simple)
Office, Residence, Parking
S/RC B1F/11F
3,506.87 m2
March 10, 2003
1, Master Lease (as of February 29, 2012) (Note 4)(Note 5)(Note 5)2,344.96 m2 (as of February 29, 2012)
2,344.96 m2 (as of February 29, 2012)
100 % (as of February 29, 2012)
Sumitomo Mitsui Construction Co., Ltd.
Sumitomo Mitsui Construction Co., Ltd.
Sumitomo Mitsui Construction Co., Ltd.
Tokyo Bldg-Tech Center Co., Ltd.
2.34% (NKSJ Risk Management, Inc.)-3-

(Note 4) The Trustee has a master lease contract with the lessor which allows the lessor tosublease the space to tenants.
(Note 5) The lessor has not provided consent for the disclosure of monthly rental income and thedeposit.
(3) TK Operator Overview
NameAddress
Representative

Principal businesses

CapitalEstablishment Date
Equity Holder
Relationship with theInvestment Corporation orasset management company

Namboku Holdings GK
1-1-1 Uchisaiwai-cho, Chiyoda-ku, TokyoManaging Member: IPPAN SHADAN HOJIN HIGH STAGEManager: Kenichi Tanaka
1. Acquisition, holding and sale of trust beneficiary rights(juekiken)
2. Acquisition, holding and sale of real estate
3. Other businesses relating to the aforementionedbusinesses
100,000 yen
July 14, 2011
IPPAN SHADAN HOJIN HIGH STAGE
The GK is not a related party as defined in the Enforcement
Ordinance of the Investment Trust and Investment CorporationLaw

4. Related Party Transaction
Namboku Holdings GK is not a related party as defined in the Enforcement Ordinance of the Investment
Trust and Investment Corporation Law. Nonetheless, the acquisition procedure follows the internal rulesof IRM for the following reasons. First, Ichigo Group Holdings Co. Ltd., the 100 % shareholder of IRM(Ichigo REIT’s asset management company), is a related party as defined in the internal rules of IRM,
and holds more than half of the equity of Namboku Holdings GK. Second, IRE, a related party as definedin the Enforcement Ordinance of the Investment Trust and Investment Corporation Law, is serving as theTK asset manager.
5. Broker Profile
N/A
6. Schedule
March 26, 2012

Contract Signing
Acquisition of TK Equity Interest
Acquisition of the Trust Beneficiary Right in Real Estate by the TK Operator

7. Future Outlook
The impact of this acquisition on Ichigo REIT’s performance forecasts for the fiscal periods ending
April 2012 and October 2012 is expected to be minimal, and there is thus no change in theperformance forecasts.

-4-Reference Information
1. Appraisal Summary
Appraiser
ValueDate
Value by Direct Capitalization Method
Cap Rate
Value by DCF method
Discount Rate
Terminal Cap Rate
Value by Cost Approach
Land/Property

Daiwa Real Estate Appraisal Corporation
2,230 million yen
16, March 2012
2,270 million yen
4.8 %2,210 million yen
4.6 %
5.0 %
2,380 million yen
72.2%/27.8%-5-

2. Property Photos-6-3. Location Map

This document is being distributed today to the Kabuto Club (the press club of the TSE) as well as to the press clubfor the Ministry of Land, Infrastructure, Transport, and Tourism and the press club for specialty construction
newspapers at the Ministry of Land, Infrastructure, Transport, and Tourism.

Website of Ichigo REIT: www.ichigo-reit.co.jp/english-7-